A snippet from ING on the Chinese data earlier, not encouraging reading
- the data reflect that not only has the trade war damaged growth in the export sector
- It has also hurt export-related supply chain companies
- and in turn, domestic demand
Maybe this is a little more positive though:
- If domestic demand is not supported by fiscal stimulus quickly, then further weakening will pose a risk to job security. That could create a vicious downwards cycle.
- As a result, we expect the Chinese government to speed up the delivery of infrastructure investment to support the economy
